Here, using the DAX is the “problem “that we have right now: as with the Can. Dollar the two legs down from the top are very similar which can mean two things; one, it is all one correction implying that the market goes back up fro a while ,or, two this is a 1-2 , 1-2 start of a major decline. As it is difficult to place a correction in the bigger picture I prefer the bearish outlook but at this particular point it may be worth standing on the side lines. Keep in mind that a 1-2, 1-2 sequence often look alike in their retracement levels which could mean that the Dax could return to the 6100/6200 level, before we even know where we stand. Here is the big picture; which would suggest that the rally from the lows from a year ago was an a-b-c X a-b-c, where both legs are equal in distance travelled but not in time. Three of these in a row is possible but IMO not very likely given the 62% retracement already achieved.
By the way, today’s continuation of the bull is supposedly due to vague statements from China with regard to their use of the Euro as a reserve currency.